Retailers Disappointed in HD Video’s Launch

The launch of high-definition blue-laser optical disc formats has been a disappointment. That was the consensus of a panel of mostly specialty A/V consumer electronics retailers speaking at a recent DisplaySearch HDTV Conference, reports TWICE Magazine.

“This whole HD or high-definition DVD is probably the worst execution of a new technology release this industry has done,” said David Workman, PRO Buying Group executive director. He cited software glitches, a format war, future compatibility issues with the delivery of the HDMI version 1.3 spec “right around the corner,” and a hasty push to get players into the market, for pouring water on early efforts to seed the HD disc market.

Casey Crane, CEO of Southern California A/V chain Ken Crane’s, attributed the sputtering launch to sub-par title releases in the Blu-ray format making for weak demonstration material and less-than-spectacular picture quality.

Countering the testimony from the specialty dealers, Noah Herschman, Amazon’s A/V for the Americas director, said the e-commerce retailers has done very well with sales of both blue-laser format players and software.

Ross Young, DisplaySearch president, said his company’s parent, The NPD Group, recently conducted a survey of 2,000 consumers, showing growing awareness of HDTV.

He said that among people planning to buy a TV, 63 percent wanted an HDTV-ready set, second only to large screen size (68 percent), according to DisplaySearch research.

Young said that HDTV will be a popular commodity with most consumer segments by the end of the decade. DisplaySearch forecasts North American HDTV shipments, which now account for 51 percent of all sets sold to dealers, to reach 90 percent market share by 2010.

However, Young said 40 percent of those polled in the NPD survey were not clear on HD’s benefits. Another 23 percent said that they wanted HD, but it wasn’t a top priority, and another 23 percent felt that HDTVs were still too expensive.

The survey also found that 81 percent of all dollar revenues for TV sales in June were from HDTVs, compared with 59 percent a year earlier. In the same time period, the average cost of an HDTV set fell from $2,223 to $1,893, DisplaySearch, Young said.

DisplaySearch expects to see 26-inch HD sets for below $500, 32-inch sets for below $700 in national chains, 37-inch below $900, 40-inch below $1,000 for an HD set and 40-inch 1,080p for slightly above $1,000, Young said.